Green light for Europe’s bailout fund gives gentle boost to the banks

Events in the eurozone were again front and centre yesterday as Germany’s top court gave the green light to a longer-term emergency bailout fund and the Continent edged closer to a proposal that the European Central Bank supervise all eurozone banks.

The ruling by the German Constitutional Court was welcomed, as it appears now that, as long as there is will in Germany’s political classes to save the eurozone, there is the cash to do it.

he news immediately triggered falls in borrowing costs for struggling countries even though the ruling came with some conditions, namely a €190 billion ceiling so that Berlin does not fall down a rabbit hole. Some commentators had expected more onerous terms.